Policies act as guiding principles designed to influence decisions and actions, while objectives are specific goals set by a business to achieve strategic outcomes.

What are Policies?

Policies are formal statements that define the general principles to guide decision-making within an organization. They ensure consistency and efficiency in operational activities and employee behavior. Policies are typically broad, offering a framework within which decisions are made to support the organization’s mission and values.

Examples of Policies:

1. A company’s privacy policy governing how employee and customer information is handled.
2. A workplace safety policy outlining standards and procedures to ensure employee safety.
3. A return policy specifying the terms under which customers can return purchased goods.

What are Objectives?

Objectives are specific, measurable goals that an organization aims to achieve within a set timeframe. They are clear targets set to advance the strategic plan of a business, making them crucial for tracking progress and measuring success.

Examples of Objectives:

1. Increasing the company’s market share by 10% within one year.
2. Reducing operational costs by 15% over the next two quarters.
3. Launching three new products by the end of the fiscal year.

Difference Between Policies and Objectives:

Basis	Policies	Objectives
Definition	Formal guidelines designed to influence and guide actions and decision-making in an organization.	Specific, measurable targets that an organization aims to achieve to fulfill its strategy.
Purpose	To ensure consistency, order, and predictability within an organization.	To set clear, actionable targets that move the organization towards achieving its strategic goals.
Nature	Broad and flexible guidelines that dictate how decisions should be made.	Specific and quantifiable benchmarks that are often time-bound.
Scope	General and apply across a wide range of situations and activities within an organization.	Focused and specific, aimed at achieving particular results.
Implementation	Policies are implemented to standardize responses to repetitive situations or decisions.	Objectives are implemented through planning and operational activities to achieve specific outcomes.
Review	Policies are reviewed periodically or as needed to reflect changes in law, technology, or organizational priorities.	Objectives are regularly monitored and evaluated based on performance and achievement of targets.
Examples	A no-smoking policy within office premises.	Achieving a sales growth target of 20% by the end of the year.